Soest, D.P. van; Kuper, G.H.; Jacobs, J. - Faculteit Economie en Bedrijfskunde, Rijksuniversiteit … - 2000
This paper presents a theoretical model emphasising energy investments’characteristics of uncertainty and irreversibility. The theoretical modelsuggests threshold effects. Firms are induced to substitute away from energyonly if prices of energy exceed a certain threshold level and they reverse...